The cryptocurrency industry demonstrated rapid development in the last few years, with institutions and businesses tapping in. With the surge in the popularity of blockchain technology, many companies are exploring the opportunity to launch their own crypto projects with tokens that will serve for solving existing issues in the industry. To gain widespread adoption and value and attract investors, it’s important to list crypto on one of the largest and most reputable centralized platforms, such as Binance, Coinbase, or WhiteBIT institutional crypto exchange. These platforms comply with regulations so every project listed on them undergoes a certain level of scrutiny for regulation compliance and legitimacy. So once a token appears on one of these platforms, it becomes visible to investors, hunting for new and trusted projects to invest in.
In this article, we will discuss the benefits of token listing on exchange.
What is Crypto Exchange Listing?
It is the process of adding a token or coin to the list of traded assets on a crypto exchange. Some platforms allow for listing without any checks, while more reputable exchanges demand a project to pass due diligence before applying:
- providing a clear whitepaper;
- providing licenses and documents;
- proving the reputation of the founder and the team;
- making sure a project complies with regulations;
- checking the compliance of the technology underlying a token;
- etc.
Having provided all the necessary documents to a crypto exchange management, you can list your cryptocurrency on exchange.
Why List Tokens on Exchange?
No doubt, without listing, a project has little chance of becoming visible among hundreds and thousands of other blockchain projects and tokens. Here are the benefits of token listing:
- Creating liquidity for your token. When an asset is listed on a trading platform, it becomes visible to traders who buy and sell it, creating liquidity. In addition, large exchanges use the services of market makers, who may add liquidity to specific assets.
- Visibility. Listing allows investors to see your token and learn more about it. It increases the chances of big investments in your project.
- Trust among investors. As we said at the beginning of this article, tokens listed on reputable exchanges ensure trust among investors as they undergo due diligence in the process of listing.
- Price stability. Being traded on crypto exchanges, tokens gain trading volume, which protects them from volatility, making the asset attractive for investors.
Conclusion
Listing tokens on an exchange is an essential step in the development of a blockchain project, allowing it to reach a wider audience, improve the token’s liquidity and trading volume, and attract investors.
